Virgin Islands Banks

Return on assets rose 12 basis points quarter-over-quarter to 1.90% in Q1 2026 from 1.78% in Q4 2025, and climbed 18 basis points year-over-year from 1.72% in Q1 2025. The institution operates 71 basis points above the national 1.20% benchmark, the widest positive ROA gap among the metrics shown. Quarter-over-quarter the improvement was 12 basis points; year-over-year, 18 basis points. The trend is accelerating, not stabilizing, with the year-over-year pace exceeding the quarter-over-quarter pace.

Net interest margin widened 11 basis points quarter-over-quarter to 3.56% from 3.45%, and expanded 28 basis points year-over-year from 3.28%. The margin sits 26 basis points below the national 3.82%, a narrower gap than the institution's ROA outperformance, suggesting noninterest income or expense discipline drives the profitability advantage. The efficiency ratio improved 64 basis points quarter-over-quarter to 49.58% from 50.22%, and fell 75 basis points year-over-year from 50.34%. At 49.58%, the institution operates 14.56 percentage points below the national 64.14%, indicating superior expense control relative to revenue. The year-over-year efficiency improvement (75 basis points) exceeded the quarter-over-quarter pace (64 basis points), consistent with the ROA acceleration pattern. Net interest income as a percentage of revenue at 0.12% is 20 basis points below the national 0.32%, mechanically indicating noninterest revenue represents a larger share of total revenue than at the typical FDIC-insured bank.

With only one institution in the Virgin Islands, the profitability metrics reflect an individual bank's operating model rather than a regional peer-group distribution. The 1.90% ROA and 49.58% efficiency ratio place the institution in the top quartile of FDIC-insured banks nationally, but no tier or specialization gradient is available for a single-bank cohort. The 3.56% net interest margin trails the national 3.82% despite the institution's 71-basis-point ROA advantage, suggesting fee income or trading revenue contributes meaningfully to profitability. If the current quarterly NIM expansion pace (11 basis points) persists, the institution will reach the national benchmark by Q3 2026.

Asset growth accelerated 70.21 percentage points quarter-over-quarter to 7.02% in Q1 2026 from 4.13% in Q4 2025, and accelerated 83.95 percentage points year-over-year from 3.82% in Q1 2025. The institution's 7.02% annualized growth rate sits 1.87 percentage points above the national 5.15% benchmark. Quarter-over-quarter the pace accelerated sharply; year-over-year, the acceleration was even steeper. The trend is accelerating, not decelerating, with the year-over-year change exceeding the quarter-over-quarter change by 13.74 percentage points.

Loan growth accelerated 1.99 percentage points quarter-over-quarter to 18.87% from 18.51%, and accelerated 266.71 percentage points year-over-year from 5.15%. The 18.87% annualized loan-growth rate is 12.67 percentage points above the national 6.20%, the widest positive growth gap among the metrics shown. Deposit growth accelerated 135.37 percentage points quarter-over-quarter to 8.02% from 3.41%, and accelerated 65.43 percentage points year-over-year from 4.85%. The 8.02% deposit-growth rate sits 3.00 percentage points above the national 5.02%. Loan growth at 18.87% outpaced deposit growth at 8.02% by 10.85 percentage points on an annualized basis, mechanically driving the loan-to-deposit ratio higher year-over-year despite the quarter-over-quarter compression. The year-over-year loan-growth acceleration (266.71 percentage points) far exceeded the deposit-growth acceleration (65.43 percentage points), indicating a sustained shift toward lending deployment.

With only one FDIC-insured institution in the Virgin Islands, the growth metrics represent an individual bank's expansion trajectory rather than a regional market dynamic. The 18.87% loan-growth rate is an outlier relative to the national 6.20% benchmark, suggesting either a low base effect from prior-period contraction or a discrete portfolio acquisition or origination surge. The 8.02% deposit-growth rate, while above the national 5.02%, is less than half the loan-growth pace, indicating the institution is deploying existing liquidity rather than funding loan growth with new deposits. If the current quarterly loan-growth pace (18.87% annualized) persists and deposit growth holds at 8.02%, the loan-to-deposit ratio will rise toward the national 76.38% benchmark, narrowing the current 22.16-percentage-point gap within four quarters.

The delinquency rate fell 66 basis points quarter-over-quarter to 1.86% in Q1 2026 from 2.52% in Q4 2025, and declined 54 basis points year-over-year from 2.40% in Q1 2025. The institution's 1.86% delinquency rate sits 1.16 percentage points above the national 0.70%, the widest negative gap among the risk metrics shown. Quarter-over-quarter the improvement was 66 basis points; year-over-year, 54 basis points. The trend is improving on both timeframes, with the quarter-over-quarter pace exceeding the year-over-year pace, indicating accelerating credit-quality recovery.

The nonperforming-asset ratio fell 34 basis points quarter-over-quarter to 0.79% from 1.13%, and declined 13 basis points year-over-year from 0.92%. At 0.79%, the institution operates 28 basis points above the national 0.51% benchmark. The quarter-over-quarter NPA improvement (34 basis points) exceeded the year-over-year pace (13 basis points), consistent with the delinquency trend. Tier 1 capital remained stable quarter-over-quarter at 10.75%, up 4 basis points from 10.71% in Q4 2025, but fell 27 basis points year-over-year from 11.02% in Q1 2025. The institution's 10.75% Tier 1 ratio sits 3.51 percentage points below the national 14.26%, indicating a leaner capital structure. The year-over-year capital decline (27 basis points) reflects either dividend distributions, asset growth outpacing retained earnings, or a shift in risk-weighted asset composition. The quarter-over-quarter stability suggests capital management has stabilized after the year-over-year decline.

With only one FDIC-insured institution in the Virgin Islands, the risk metrics reflect an individual bank's credit profile and capital posture rather than a regional peer-group distribution. The 1.86% delinquency rate, while 1.16 percentage points above the national 0.70%, has improved 66 basis points in the most recent quarter, the steepest quarterly decline in the series shown. The 10.75% Tier 1 capital ratio remains well above the regulatory minimum of 6.00% for well-capitalized institutions, leaving a 4.75-percentage-point cushion. If the current quarterly delinquency-improvement pace (66 basis points) persists, the institution will reach the national 0.70% benchmark by Q3 2026. The 18.87% loan-growth rate and 7.02% asset-growth rate are outpacing the 4-basis-point quarterly capital accretion, mechanically compressing the Tier 1 ratio absent capital raises or earnings retention.

The Virgin Islands bank's loan-to-deposit ratio fell 4.47 percentage points quarter-over-quarter to 54.21% in Q1 2026, down from 58.68% in Q4 2025, as deposit growth (8.02%) outpaced loan growth (18.87%) on an annualized basis. Year-over-year, the ratio rose 4.95 percentage points from 49.26% in Q1 2025, marking a sustained shift toward lending deployment. The institution operates 22.16 percentage points below the national 76.38% benchmark, indicating substantial liquidity headroom. Quarter-over-quarter the ratio compressed; year-over-year it expanded. The trend reflects deposit-gathering momentum outpacing loan origination in the most recent quarter.

Noninterest-bearing deposits represented 40.28% of total deposits in Q1 2026, up 95 basis points from 39.33% in Q4 2025 but down 1.49 percentage points from 41.77% a year earlier. The institution's noninterest-bearing share sits 18.68 percentage points above the national 21.60%, a structural outlier reflecting the deposit franchise's composition. The quarter-over-quarter increase suggests depositors maintained transaction balances despite the broader industry trend toward interest-bearing instruments. Net interest income as a percentage of revenue fell 24 basis points quarter-over-quarter to 0.12% from 0.36%, and remained stable year-over-year at 9 basis points versus the prior year's 0.09%. The metric sits 20 basis points below the national 0.32%, indicating noninterest revenue concentration.

With only one FDIC-insured institution in the Virgin Islands, these metrics represent a single bank's balance-sheet posture rather than a regional competitive dynamic. The 40.28% noninterest-bearing share is an institutional characteristic, not a market-wide pattern. The institution's loan-to-deposit ratio of 54.21% leaves ample capacity for loan growth without incremental deposit-gathering, assuming credit demand materializes. If the current quarterly deposit-growth pace (8.02% annualized) persists and loan growth decelerates from its 18.87% pace, the loan-to-deposit ratio will compress further, potentially widening the gap to the national benchmark.